The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1887-11-11


agent, Mr..Armstrong, has effected
loan of 81 100000 at an expense
of Sl45, 900, OF which 100000 for
commissions at D per cent, and
$4,000 for discount we're author
lied by the statute providing for the
loan, while $4,000 is an expense
wholly unauthorized by the statute
except as the cost of preparing The
bonds and coupons may he apart of it.
The real problem before the Legis-
lature is this matter of S75, 900, or
$4,000 pounds for expenses. The
question of making the bonds pay
able in United States gold or Eng
lish sovereigns is of little conse-
quence, and IL IL shall be considered
that the latter is best q slight
amendment will make it legal. So
far my view corresponds with Mr..
Green's, but when be says "the
Cabinet is of the opinion that this
Government have no one to look to
for the reimbursement of this money
but its financial agents." / feel that
there may be other conclusions bet
ter representing the equities of the
case and the rights Of Hawaiian tax
payers. We must not forget that
Mr.. Armstrong was willing to AS
sumo the position of agent for the
Hawaiian Government and agent of
Il syndicate dealing with the Ha-
waian Government, at the same
time; if the position had its con-
veniences for him and his London
principals, they cannot avoid its re-
sponsibilities, not the least ofgwhlch
is the liability they thereby incurred
as representative of the Hawaiian
Government.
think il may be assumed without
argument that the Hawaiian Gov
eminent is not bound by the action
of its agents SO far as they have
passed beyond their authority, and
this is set forth in the power Of at
torncy from the Minister of Finance
and the Loan Acts of 1886. Mr..
Armstrong; complaint that he had
received no detailed instructions is
nonsense it does not appear that
he asked for any; in fact none were
necessary for he had the statutes,
and at least an average degree of
intelligence in person who seeks
to assume such grave responsible
ties, must be taken for granted. 1t
is useless to quote Mr.. Gibson 5
reluctant consent" to the change
of the standard of payment from
United States gold to sovereigns, or
the agent of the late ministry to the
total expenses; Mr.. Armstrong
knew that neither the consent of
Mr.. Gibson or the whole Cabinet
could amend the law or bind the
Legislature to do so.
Definite information as to the
present locality of the guarantees
or certificates of our agents which
authorize their holders to receive the
bonds, when issued, would assist
the consideration of this matter. For
instance if the members of Mr.. Arm
strong's syndicate are the present
holders of these certificates, or even
of $4,000 worth of them, it would
be simple and just solution of the
difficulty to keep back $50, 600
worth of bonds until that amount of
cash was Forthcoming.
As Mr.. Armstrong has exceeded
his instructions the Hawaiian Gov
eminent holds the advantageous
position of being free to choose its
course within certain limits. 1t
may say that it will not issue the
sterling bonds until the 5000 is
paid, and no principle of law would
be violated, or it may simply re-
serve enough bonds to correspond
with the money in dispute, or it
may issue all the bonds and bring
proceedings against its financial
agents for the balance due the Gov
eminent.
1t is difficult, without more data
than have been furnished, TO dis
cuss the question of our liability to
the English subs :ribers of the loan
but even if we are bound to furnish
them United States gold bonds we
are not bound to furnish sterling
bonds.
Mr. Macfarlane's letter throws nc
light upon the question of the $751;
600 charge. He refers to the expe-
riences of other countries, which
cannot affect our statute.
1t would be interesting to know
what was the understanding between
our Government and its financial
agents as to their remuneration for
their services. Were they working
for us under a specified salary OF
were they to have part of the COM
missions, or were they so completely
left out in the cold that they have
had to charge up part of the 49,
900 on account of their own time
and services? | see no allusion to
their remuneration in the statements
already furnished.
1t is important that this matter
should be impartially investigated
and thee strict justice done in
the interest of taxpayers as well
as lenders, utterly regardless of all
cheap talk about expediency and
the possible injury to our credit in
England. S. b. Dole.